Ikigai Asset Management sells $65M claim to FTX bankruptcy
Reports suggested that some FTX creditors were able to get up to 73 cents on the dollar for selling their claims ahead of any bankruptcy court proceedings.
Ikigai, an asset management firm that revealed a large majority of its hedge fund’s assets had been on FTX when it collapsed, said it had sold its claim in the exchange’s bankruptcy proceedings.
In a Dec. 22 post on X (formerly Twitter), Ikigai Chief Investment Officer Travis Kling said the firm sold a $65 million claim to its FTX funds because the price was “much, much higher” than expected. Kling did not say at what price the firm had sold the claim, but reports suggested that some creditors could get up to 73 cents on the dollar — the highest price since FTX’s collapse in November 2022.
“At the end of the day, the decision on whether to sell the claim was mostly a function of opportunity cost - how much do you think the claim price would increase in the future vs taking the cash now and deploying it into something else that can earn a return,” said Kling. “Now that we have received the cash proceeds from the sale of the claim, all of our investors that want to redeem from the fund are able to do so. The large majority of the capital is staying in the fund.”
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